CBSE MIXED TEST PAPER-09 CLASS - XII ACCOUNTANCY

CBSE MIXED TEST PAPER-09 SECOND PRE-BOARD EXAMINATION

CLASS - XII ACCOUNTANCY [Time : 3 hrs.]

[M. M.: 80]

General Instructions: (1) All questions are compulsory. (2) Working notes are to be given, where-ever required. (3) No overwriting and cuttings should be done. (4) Journal entries should accompany with narrations. (5) All parts of a question should be attempted at one place. PART –A (PARTNERSHIP AND COMPANY ACCOUNTS) Q1. How is life membership fee treated in the account of a ‘Not for Profit Organisaiton’?

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1 th share which he acquires 5 equally from X and Y. Z brings Rs.10, 000 as premium in cash. What amount of premium will be received by X and Y? [1]

Q2. X and Y are partners sharing profits in the ratio of 7:3 Z joins for

Q3. Give difference between Capital Reserve and Reserve capital.

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Q4. Give difference between Gaining Ratio and sacrifice Ratio.

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Q5. Ravi a partner, in the firm has advance a loan of Rs.1, 00, 000 to the firm and has demanded an interest @ 9% p.a. the partnership deed is silent on the matter. How will you deal with it? [1] Q6. On the basis of the following information, calculate the amount that will appear against the item, ‘Medicine Account’, in the Income and Expenditure Account for the year ended 31st March, 2008: [3]

Particulars Stock of medicine Creditors for medicine

As at 1-4-2007 6, 000 4, 000

As at 31-3-2008 1, 000 2, 600

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Advance paid for medicine on 31-3-2008 Advance paid for medicine carried from 2006-07 Amount paid for medicine during the 2007-08

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2, 600 400 21, 600

Q7. D.K. Ltd. forfeited 10 shares of Rs.10 each (Rs.6 called up) issued at discount of 10% to Y on which he had paid the application money of Rs.2 per share. Out of these 8 shares were-reissued to Z at Rs.6 per share, Rs.8 paid up. [3] Give journal entries to record forfeiture and issue of shares in the books of the company. Q8. Anupam Ltd. issued 5, 000 9% debentures of Rs.100 each at a discount of 5% to be redeemed at par in four equal instilments from the end of the first year. Show the discount on the issue of Debentures Account for the period of 4 years. [4] Q9. Ram, Mohan and Sohan were partners in a firm. On April 1, 2008, their capital stood at Rs.50, 000; Rs.25, 000 and Rs.25, 000 respectively. As per the provision of the partnership deed: [4] (a) Sohan was entitled for a salary of Rs.1, 500 per month. (b) Partners were entitled to interest on capital at 5% p.a. and (c) Profits were to be shared in the ratio of capitals. The net profit for the year ended March, 31, 2008 of Rs. 66, 000 was divided equally without providing for the above terms. Pass an adjustment entry to rectify the above error. Q10. Na company purchased a running business from M/s. Raja brother for a sum of Rs.1, 50, 000; payable as Rs.1, 00, 000 in fully paid 10% preference share of Rs.10 each and balance in cash. The assets and liabilities consisted of the following: [3] Plant and machinery Balding Sundry Debtors Stock Cash Sundry Creditors

Rs.40, 000 Rs.40, 000 Rs.30, 000 Rs.50, 000 Rs.20, 000 Rs.20, 000

You are required to pass the necessary journal entries in the company’s books. Q11. Moni, Soni and Toni were partners in a firm sharing profits in the ratio of 5:3:2. On 31st March, 2008 their Balance-Sheet were as under: [6] Liabilities Creditors Capitals A/cs:

Rs.

assets 11, 000 Buildings 6, 000 Machinery Stock

Rs. 20, 000 30, 000 10, 000


Moni : 30, 000 Soni : 25, 000 Toni : 15, 000

died on

1st

Patents Debtors 70, 000 cash 87, 000

11, 000 8, 000 8, 000 87, 000

Moni October, 2008. It was agreed among his executors and the remaining partners that:

(a) Goodwill to be valued at 21/2 years purchase of the average profits of the previous 4 years, which were 2005: Rs.13, 000; 2006: Rs.12, 000; 2007: Rs.20, 000 and 2008: Rs.15, 000. (b) Patents be valued at Rs.8, 000; machinery at Rs.28, 000 and building at Rs.25, 000. (c) Profit for the year 2008-09 be taken as having accrued at the same rate as that of the previous year. (d) Interest on capital be provided at 10% p.a. (e) Half of the amount due to Moni to be paid immediately to the executors and the balance transferred to his (Executor) Loan Account. Prepare Moni’s Capital Account and Moni’s Executor Account as at 1st October, 2008. Q12. Ram and Rahim are partners in a firm sharing profits and losses in the ratio of 3:2. Robin is coming for 1/3rd share, is to pay Rs.30, 000 as premium for goodwill but pays only Rs.20, 000. He also brings Rs.3, 00, 000 as capital. Goodwill already appears in the books of account Rs.50, 000. As between Ram and Rahim, they decided to share profits and losses equally. Pass necessary journal entries. [4] Q13. From the following Receipts and Payments Account of Prince Sport Club and the additional information supplied. Prepare an Income and Expenditure Account and the Balance-Sheet as on 31st March, 2008: [6] Receipt and Payment A/c (For the year ended 31-3-08) Receipts To Balance C/d To subscriptions: 2006-07 2007-08 2008-09 To Rent Received To Sale of Old News Papers

Rs. Payments 35, 000 By Salaries By Central Expenses 10, 000 By Electric Charges 1, 60, 000 By Sports Materials 20, 000 By Purchase of News Paper By 10% Investment in 4, 500 Government Securities(31-3-2008) 500 By Balance C/d 3, 30, 000

Additional Informations: Material downloaded from http://myCBSEguide.com and http://onlineteachers.co.in Portal for CBSE Notes, Test Papers, Sample Papers, Tips and Tricks

Rs. 45, 000 10, 000 15, 000 1, 00, 000 2, 000 1, 00, 000 58, 0000 3. 30. 000

(a) The club has 3, 000 members, each paying an annual subscription of Rs.100. (b) On 31st March, 2008. Salaries amounting to Rs.5, 000 were outstanding. Salaries paid also included Rs.3, 000 for the year 2006-07. (c) On April 1, 2007, the club owned building valued at Rs.1, 00, 000; furniture at Rs. 50, 000 and books at Rs.20, 000. (d) Depreciation on building and furniture was provided @ 10% p.a. (e) Capital Fund on April 1, 2007 was Rs.2, 12, 000. Q14. Pass the journal entries for the redemption of 10, 000; 15%. Debentures of Rs.50 each issued at par to be redeemed as follows: [6] (a) Redeemable at a premium of 10%, by conversion into Equity Shares issued at par. (b) Redeemable at a premium of 10% by conversion into 8% preference shares issued at a premium of 25%. (c) Redeemable at a premium of 8%, by conversion into 10% preference shares issued at a discount of 10%. OR (a) What do you understand by issue of Debentures as “Collateral Security”? Explain. [2] (b) Pass the necessary journal entries in the books of the company in the following cases: (i) 1, 000; 8% debentures of Rs.100 each have been issued at 5% discount and are redeemable at par. [1] (ii) 1, 000; 8% debentures of Rs.100 each have been issued at 5% premium and are redeemable at par. [1] (iii) 1, 000; 8% debentures of Rs.100 each have been issued at par and are redeemable at 5% premium. [1] (iv) 1, 000; 8% debentures of Rs.100 each have been issued at 5% discount and are redeemable at 10% premium, [1] Q15. The following is the Balance-Sheet of A and B, who had been sharing of profits in proportion of 3/4th and 1/4th on March 31, 2008: [8] Liabilities Creditors General Reserve Capital A/cs: A 30, 000 B 16, 000

Rs.

Assets 37, 500 Cash at Bank 6, 000 Bills Receivable Debtors Stock 46, 000 Office Furniture Buildings Advertisement Exp. 89, 500

Rs.

They agree to take C into partnership on April 1, 2008 on the following terms: Material downloaded from http://myCBSEguide.com and http://onlineteachers.co.in Portal for CBSE Notes, Test Papers, Sample Papers, Tips and Tricks

22, 500 3, 000 16, 000 20, 000 1, 000 25, 000 2, 000 89, 500

(a) That C pays Rs.14, 000 as his capital for 1/5th share in the future profits. (b) That a goodwill account be valued from the books of the firm at Rs.20, 000. C is to bring in cash for his share of goodwill. (c) That stock and furniture will be reduced by 10% and 5% provision for doubtful debts will be created on debtors. (d) Building be appreciated by 20% (e) That the Capital Accounts of the partners will be readjusted on the basis of their profitsharing arrangement and excess of deficiency transferred to their Current Account. Prepare the Revolution Account, the Partners’ Capital Account and the Balance Sheet of the New Firm. OR The Balance-Sheet of Amar and Anthony, who are partners in affirm sharing profits according to heir capitals as at 31st March, 2008 was as under: Liabilities Creditors General Reserve Capital A/cs: Amar Akbar Anthony

Rs. Assets 21, 000 Buildings 20, 000 Machinery Stock 80, 000 Debtors 20, 000 40, 000 Less: Provs. For 40, 000 Bad Debts 1, 000 Cash at bank 2, 01, 000

Rs. 1, 00, 000 50, 000 18, 000

19, 000 14, 000 2, 01, 000

On that date, Akbar decided to retire from the firm and was paid for his share in the firm subject to the following terms: (a) Building to be appreciated by 20%. (b) Provision for bad debts to be increased to 15% on debtors. (c) Machinery to be depreciated by 20%. (d) Goodwill of the firm is valued at Rs.72, 000 and the retiring partner’s share is adjusted through the Capital Accounts of the remaining partners. (e) The capital of the new firm be fixed at RS. 1, 20, 000. Prepare the Revaluation Account, the Capital Accounts of the partners and the Balance-Sheet after retirement of Akbar. Q16. Raj Limited Company issued a prospectus inviting applications for 20, 000 shares of Rs.10 each at a premium of Rs.2 per hare payable as follows: [8] On Application Rs.2 On Allotment Rs.5 (including premium) Material downloaded from http://myCBSEguide.com and http://onlineteachers.co.in Portal for CBSE Notes, Test Papers, Sample Papers, Tips and Tricks

On First Call On Second and Final Call

Rs.3 Rs.2

Applications were received for 30, 000 shares and pro-rata allotments was made on the applications for 24, 000 shares. Money overpaid on applications was employed on account of sum due on allotment. Suresh, to whom 400 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call his shares were forfeited. Mohan, the holder of 600 shares, failed to pay the two calls, and his shares were forfeited after the second call. Of the shares forfeited, 800 shares were sold to Karim. Credited as fully paid for Rs.9 per share. The whole of Suresh’s shares have been re-issued. Show journal entries in the books of company. OR Krish Ltd. Company invites applications for 50, 000 equity shares of Rs.10 each payable as follows: On Application Rs.3 On allotment Rs.4 On First Call Rs.2 On Final Call the balance Applications were received for 55, 000 shares. Allotment were made on the following basis: (a) To applicants for 35, 000 shares – in full. (b) Top applicants for 20, 000 shares – 15, 000 shares. Excess money paid on application was utilized towards allotment money. A share holder who was allotted, 1, 500 shares out of the group applying for 20, 000 shares failed to pay allotment money and money due on calls. These shares were forfeited. 1, 000 forfeited shares were reissued as fully paid on receipt of Rs.8 per share. Show the journal entries in the books of company. PART – B (ANALYSIS OF FINANCIAL STATEMENTS) Q17. Quick Ratio of a Company is 2:1. State giving reason whether the ratio will improve, decline or not change on sale of stock (Goods). [1] Q18. What do you mean by cash flow statement? Material downloaded from http://myCBSEguide.com and http://onlineteachers.co.in Portal for CBSE Notes, Test Papers, Sample Papers, Tips and Tricks

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Q19. Classify the following items under operating, Investing and Financing Activity: (a) Interest received by a non finance company. (b) Rent paid by a company.

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Q20. How would you disclose the following items in the Balance-Sheet of a Limited Company: [3] (a) Dividend Payable (b) General Reserve (c) Debenture Sinking Fund (d) Discount on Issue of Debenture not yet written off (e) Debenture Suspense Account (f) Sundry Debtors. Q21. Prepare the Common Size Income Statement from the following information: Particulars Net Sales Cost of Goods Sold Operating Expenses Income Tax Rate

31-2-2007 1, 00, 000 70% of Sales 8, 000 50%

[4]

31-3-2008 1, 00, 000 74.8% of Sales 9, 800 50%

(a) A firm has Current Ratio of 4:1 and Quick Ratio of 2.5:1. Assuming inventories (stock) are Rs.22, 500. Find out current Assets and total current liabilities. [4] (b) A firm had Current Assets of Rs.3, 00, 000. It then paid a current liabilities of Rs.60, 000. After the payment, the current Ratio was 2:1. Determine the size of current liabilities and working capital after the payment was made. Q23. From the following Balance-Sheet of Rajan Ltd. prepare Cash Flow Statement: Liabilities Equity Share Capital 10% Preference share Capital General Reserve Profit/Loss A/c Creditors

2006 Rs. 1, 50, 000 75, 000 20, 000 15, 000 37, 500

2007 Rs. 2, 00, 000 59, 000 35, 000 24, 000 49, 500

2, 97, 500

3, 58, 500

Assets Goodwill Building Plant Debtors Stock Cash

2006 Rs. 36, 000 80, 000 40, 000 1, 19, 000 10, 000 12, 500 2, 97, 500

Depreciation charged on plant was Rs.10, 000 and on Building Rs.60, 000.


[6] 2007 Rs. 20, 000 60, 000 1, 00, 000 1, 54, 500 15, 000 9, 000 3, 58, 500